Bellevue Healthcare Strategy (Lux)
Investments in the 40 most attractive healthcare stocks worldwide, regionally diversified and across sub sectors
Profiting from pent-up demand in Emerging Markets as well as from innovation in industrialized countries
Strong focus on quality mid caps and underweight in pharma stocks
Please find a more detailed description of share classes here.
The Bellevue Healthcare Strategy Fund invests in global healthcare companies with innovative business models. Its investment universe consists of biotechnology and pharma companies, medical technology and services companies as well as generics producers that are involved in the development, manufacturing or sale of products and services.
Indexed performance (as at: 03.12.2021)
NAV: USD 251.62 (02.12.2021)
Rolling performance (02.12.2021)
|02.12.2020 - 02.12.2021||6.74%||13.81%|
|02.12.2019 - 02.12.2020||24.59%||15.63%|
|02.12.2018 - 02.12.2019||6.94%||9.08%|
|02.12.2017 - 02.12.2018||9.62%||11.44%|
Annualized performance (02.12.2021)
|Since Inception p.a.||14.73%||14.02%|
Cumulative performance (02.12.2021)
Facts & Key figures
The Bellevue Healthcare Strategy Fund invests in global healthcare companies with innovative business models. Its investment universe consists of biotechnology and pharma companies, medical technology and services companies as well as generics producers that are involved in the development, manufacturing or sale of products and services. Experienced sector specialists focus on profitable companies that have a well-established product portfolio. The fund invests top down in the four regions North America, Western Europe, Emerging Markets and Japan/Oceania. For each of these regions, the most attractive companies are determined based on quantitative and qualitative criteria. The fund seeks to outperform the MSCI World Healthcare Index. Show moreShow less
Investment suitability & Risk
|Investment Manager||Bellevue Asset Management AG|
|Custodian||RBC Investor Services, Luxembourg|
|Fund Administrator||RBC Investor Services, Luxembourg|
|Year end closing||30. Jun|
|NAV Calculation||Daily "Forward Pricing"|
|Cut of time||15:00 CET|
|Subscription Fee (max.)||5.00%|
|Total expense ratio (TER)||2.22% (30.11.2021)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (30.11.2021, base currency USD)
|No. of positions||46|
Top 10 positions
Breakdown by sector
Opportunities & Risks
- The fund invests in the 40 most attractive healthcare stocks worldwide.
- Proprietary investment process: Half-yearly company evaluation and rebalancing.
- Underweighting of pharma and US stocks against the relevant healthcare indices.
- Strong focus on quality mid-caps.
- Bellevue - Healthcare pioneer since 1993 and today one of the biggest independent investors in the sector in Europe.
- Equities are subject to strong price fluctuations and so are also exposed to the risk of price losses.
- The fund may invest in financial instruments that might have a rather low level of liquidity, which can in turn affect the fund’s liquidity.
- Investments in foreign currencies are subject to currency risks.
- Investing in emerging markets entails the additional risk of political and social instability.
- Increased opportunities through possible derivative transactions are accompanied by an increased risk of losses.
Review / Outlook
Broad swaths of the global stock market and the healthcare sector as a whole showed a positive performance in October. The MSCI World Healthcare index closed the month up 2.3% (in CHF). But October was not a good month for the Healthcare Strategy Fund (Lux), as the fund is now called. It closed the period under review with a loss of 1.4% (I shares).
Initial reports on the course of business and financial results for the third quarter were published during the month of October. Several companies in the fund's portfolio released Q3 results and they were generally quite pleasing, particularly the results from Anthem, HCA Holdings and Abbvie, all US companies. But that was not enough to offset the countervailing market forces the fund faced in October: Big Pharma, a segment underweighted by the fund, performed very well last month while Asian markets, which are overweighted in the portfolio, lagged well behind the US and European stock markets. On the bright side, the Bellevue Healthcare Strategy (CH) Fund celebrated its five-year anniversary at the end of October. It has delivered a pleasing return of 103.4% since its launch in 2016, which represents an excess return of 16.2% over the benchmark performance – with a low daily volatility of 16.1%. The semi-annual rebalancing of the fund's portfolio took place in October. Eleven of the 40 stocks in the portfolio were replaced, which is at the low end of the historical range. The rebalanced portfolio maintains a strong element of diversification across different countries and sub-sectors, and this will continue to set it apart from its benchmark index, the MSCI World Healthcare Index.
The investment process for the Bellevue Healthcare Strategy Fund resembles the rules-based investment process that Bellevue has successfully applied since 2007. In this approach, the 40 most attractive stocks in the healthcare sector worldwide are selected every six months. The Bellevue Healthcare Team screens about 600 of the 4000 listed companies in the healthcare sector worldwide based on four quantitative criteria (PEG valuation, price/sales, sales growth and EBITDA/sales) and four qualitative criteria (assessing the company's management, product pipeline, operating risks and country-related risks). The ten most promising stocks from four different regions – Western Europe, North America, Japan/Australia and emerging markets – are selected. The maximum weighting of the region with the highest overall score, which is usually North America, is capped at 35% during the periodic rebalancing, which increases the emphasis given to emerging markets. Companies with rich valuations and low growth rates will rarely be selected for the portfolio. Mid cap stocks have typically represented 60-80% and the Asia region approximately one-third of the portfolio. Pharmaceutical stocks are clearly underweighted compared to the MSCI World Healthcare Index. Bellevue has applied this investment approach since April of 2007 and it is used to compile the Adamant Global Healthcare Index.
Past performance is not a reliable indicator of future results and can be misleading. As the sub-fund is denominated in a currency that may differ than an investor’s base currency, changes in the rate of exchange may have an adverse effect on prices and incomes. Performance is shown net of fees and expenses for the relevant share class over the reference period. All performance figures reflect the reinvestment of dividends and do not take into account the commissions and costs incurred on the issue and redemption of shares, if any. Individual costs are not taken into account and would have a negative impact on the performance. With an investment amount of EUR 1,000 over an investment period of five years, the investment result in the first year would be reduced by the front-end load of up to EUR 50 (5%) as well as by additional individual custody charges. In subsequent years, the investment result would also be reduced by the individual custody account costs incurred. The reference benchmark of this class is used for performance comparison purposes only (dividend reinvested). No benchmark is directly identical to a sub-fund, thus the performance of a benchmark is not a reliable indicator of future performance of the sub-fund it is compared to. There can be no assurance that a return will be achieved or that a substantial loss of capital will not be incurred. All figures in base currency in %, calculated by the total return / BVI method.Show moreShow less